Economic shifts and branding

FE Team | Published: November 29, 2025 20:23:40

The Bangladesh economy has been affected by deteriorating economic conditions, rising inflation, currency depreciation, and a decline in purchasing power. It appears that the focus of key macroeconomic challenges has begun to shift towards how brands adapt, foster, and cultivate new approaches to engagement and brand communication.
One of the impacts of economic recession is the shift in consumer behaviour. Households adopt more economical purchasing habits and focus on essential goods. Consumers become increasingly value-oriented and more selective in pricing and brand switching. When consumption becomes rational, brand value - and the way it is communicated and delivered - must evolve to suit different economic realities.
To survive in such circumstances, brands must develop a value-based strategy. Consumers are not necessarily seeking the lowest price; rather, they want justification for every expenditure. Value, durability, functionality, savings, and return on investment must be clearly communicated.
Messaging needs to shift from lifestyle, prestige, and aspirational living to practical yet motivating propositions.
Economic instability also demands strengthened brand positioning. In times of uncertainty, brands should adopt one of the following stances - premium, mid-tier, or value - and maintain it.
Competing in the grey area confuses a market that seeks clarity. Firms that fail to adjust risk becoming irrelevant as buyers gravitate towards brands that demonstrate stability, reliability, and fairness. Local brands, in particular, have a strong opportunity to reinforce their position through cultural relevance, local sourcing, and, most importantly, value.
Md. Kamrul Ahsan Shamim
Department of Marketing
North South University